US Dollar: Chart Setup Hints At Pullback
- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 11937, 11888, 11829
- Resistance: 11985, 12044, 12149
The Dow Jones FXCM US Dollar Index moved upward as expected after producing a bullish Morning Star candlestick pattern. Negative RSI pergence warns a pullback may be ahead however. A daily close below trend line support at 12021 exposes the 61.8% Fibonacci expansion at 11985. Alternatively, a move above the 76.4% level at 12044 clears the way for a test of the 12141-49 area (100% Fib, March 13 high).
Our long-term fundamental outlook calls for a broadly stronger US dollar against its major currency counterparts. With that in mind, we are holding long via the Mirror Trader US Dollar currency basket.
US Dollar Daily Chart